Best Credit Card in the USA
To clarify, choosing a best credit card in the USA amongst the thousands of available card is definitely a difficult task. Undeniably, a lot of factors such as variety of cards, network of cards, features of cards, your spending hobby, your personal capacity all have impact at your decision making. Hence, we will show you some best credit cards in the USA in different situations.
Surprisingly, Your need is most important before selecting any credit card. Though some customers buy car just for credit building, some are not able to pay debt so they have need to transfer the debt to other card, some are businessman who want earn more rewards to maximize their earning rate, some are travel or entertainment lovers who needed free miles or points, some users require household products at installments. In, summary, need of card vary from person to person. However, we are going to show you some best credit cards in the USA in different situations.
As can be seen, after reviewing thousands of available card, we have shortlisted a few. Finally, before shortlisting we have taken into consideration following factors.
- Annual Fee
- Welcome Bonus
- Rewards (Cash Back Rewards, Travel Mileage or points, Different Perks)
- Business Feature Credit Cards
- Student Feature Credit Cards
- Intro APR
- Regular APR
- Balance Transfer Fee
- Foreign transaction Fee
- Credit Needed
Eventually to compare cards, we have weighted all cards in term of dollar gain. For your better understanding we have rated each card from 1 to 5. 5 rating is for the best card.
Best Credit Cards with Best Welcome Bonus:
In short, if you have decided to buy a new credit card, than first benefit is welcome bonus. For this purpose, you have to keep in mind annual fee and other benefits of card. Lastly, we are listing here a few credit cards that offer outstanding welcome bonus.
Hilton Honor Aspire Card From American Express
Spend $4,000 during first 90 days of card membership and earn 150,000 points as a Welcome Bonus.
IHG Rewards Premier Credit Card
If you Spend $3,000 during first 90 days of card membership you can earn 175,000 points as a Welcome Bonus.
British Airways Visa Signature Card
When you Spend $5,000 during first 90 days of card membership, you can earn 70,000 Avios as a Welcome Bonus.
Hilton Honors Aspire Card from American express
with Spending $6,000 during first 180 days of card membership you can earn 80,000 points as a Welcome Bonus.
Chase Freedom Unlimited
Finally Spend $20,000 during first 12 months of card membership and earn $300 as cash back.
Wyndhom Rewards Earner Plus Card
At least Spend $1,000 during first 3 Months of card membership and earn 45,000 points as a Welcome Bonus.
Wyndhom Rewards Earner Plus Card
At least Spend $1,000 during first 3 Months of card membership and earn 45,000 points as a Welcome Bonus.
Bank of America Travel Rewards Credit Card for Students
Naturally Spend $1,000 during first 3 months of card membership and earn 25,000 points as a Welcome Bonus.
IHG Rewards Premier Business Card
That is to say, Spend $3,000 during first 90 days of card membership and earn 140,000 points as a Welcome Bonus.
The Platinum Card from American Express
In the same way, Spend $6,000 during first 180 days of card membership and earn 80,000 points as a Welcome Bonus.
Upgrade One Card
In like manner, Just make 3 purchases after getting card membership and earn $400.
Initial Information about Credit Cards:
Shortly, here we will take a look in detail about the information of the credit cards.
How Credit Card Works?
Overall, credit card is basically a short term loan limit that can be used for online purchases, store purchases ATM machines withdrawals. Limit of your card depends upon many factors such as your income, credit score, account turnover and payment behavior. To point out, on the basis of these factors limits of credit card is granted to you. For paying credit card loan, you are provided a bill to pay on monthly basis. As a modern world, you can pay the bill online or at bank branches through cash, app or cheque. Obviously, You also got grace period to pay the monthly bill. Normally this grace period have 50 days when you utilize the card at very next day of billing date.
Obviously, we also recommend that always pay your monthly bill with full amount to avoid high interest and to maintain your good credit score. Usage of card is expensive if you draw cash through ATM, because in such a case interest become due from the first day of usage. . However in the case of emergency when no other option is available, than withdrawal through ATM is necessity of time. With the usage of credit card you can also earn rewards just like cash back, travel mileage or bonus points. Thus, Cardholder enjoys lovely perks as VIP lounge at Airports, free entry at musical shows.
How Credit Card Reward Works?
Similarly, every credit card has different way of rewarding. While some credit have very easy way as they offer flat percentage at every purchase. For example you will earn 3% cash back at every purchase. All credit card do not offer cash s reward, instead cash they offer mileage or points.
Hence, after earning rewards, a question came into mind that what is the best way to redeem these rewards. Rewards can be redeemed in two ways.
A. General Purpose Rewards:
In general, you can use your earned rewards for statement credit, groceries purchase, for travel or for other available options.
B. Complex Rewards:
In contrast, some card require that you should redeem earned points or mileage for specific purpose or at specific place.
Example: Given that, you can redeem your points only for groceries, travel or gas station purchases. Similarly some store card offer the usage of earned rewards only at their store purchases only.
How to get maximum credit card rewards?
Moreover, you can earn rewards during consumption of card. You can earn even during redeeming of already earned rewards.
Further, your earning of rewards will be maximum at your purchases particularly at groceries, gas stations, travel and mentioned stores. Normally mostly cards offer 3% reward at these purchases.
Second important point is that you have to match your spending hobby with the card type. For example if you are travel lover than spend at travel through travel card and get rewards. Again it is recommended that spend these earned rewards again for travelling to maximize the benefits. By adopting this pattern you earning can cross 8%.
How mark-up/interest is charged at credit cards?
Unquestionably, different credit cards companies have different interest rates. Interest is calculated from the date of spending if your due date has expired and you have not paid the bill with full amount. Interest is calculated at each day end outstanding balance. Interest is compounded and accumulated each day. Always try to pay the full bill before the due date.
How to calculate credit cards daily interest?
With dividing your card APR rate by 365, You will get daily interest rate, Now multiply with number of day. Lastly you will get interest amount.
Example: Even more, your outstanding amount is $1,000 and APR is 25%. Now divide 25 by 365, you will get result of 0.068 that is daily interest rate. Now multiply it with 2 if your entire $1,000 is outstands from 2 days, result is 0.14. Next, you have to pay $1,000.14 after two days. That amount includes total payable including interest.
Different features of credit cards:
In truth, general thought about the credit cards is that it is short term loan for purchases. However now a day’s credit card is more than purchases, it is plastic money with many protections, features, offers, rewards and perks. That is the reason each credit card is different from the other.
1. Credit Card Rewards:
Must be remembered, when we talk about the credit card, reward is earning that may be in shape of cash, points or miles. These earning vary with each card. One credit issuer may have many credit card and each card may vary with other card in term of rewards.
2. Balance Transfer Credit Cards:
Following this feature of credit card is amazing when you under pressure of high debts and are unable to pay the bill at due dates. It will occur high interest at you. In such a case to avoid high interest you will be happy in using balance transfer option. With using balance transfer feature you can transfer your outstanding debt to other card. A handsome grace period is granted to you that may two years. In other words, some card issuer has no fee of balance transfer and some may charge up to 3%. By using this facility you can manage your debt without paying high debt and you can secure your credit score also.
3. Credit Cards with low interest:
Of course, for every one interest rate matters. Some card have low interest rate while in the same industry some card are with high interest. However for a good business in the market interest of credit card should be according to industry average. Interest rate is termed as APR.
4. 0% Intro APR Credit Cards:
Must be remembered, It is basically an introductory offer for a new card holder to avail within a specific time period. For example if a card have 0% intro APR for 15 months. In this case you can make specific purchase and can pay the amount in 15 months without any interest. It is basically a feature to defer interest for a specific period. Now a days you could see many installments offers at online big retail shops.
5. 0% Foreign Transaction Fee:
To clarify, many times you have need to use credit card internationally specifically in the case of online business and during travelling. Normally rate of Foreign Transaction Fe is 3%. Some card in market offer 0% Foreign Transaction Fee.
6. Credit Cards specially for students:
To explain, credit card companies works hard at college students so that could capture future market advance. College students will be near future economy player. Usually this is their first credit card and first credit card for any one creates loyalty. This strategy ensures strong future business for companies. Due to this reason students are special focused and student’s card have attractive rewards, relax policies and lovely perks.
7. Credit Cards for Businesses:
Target to a specific niche is need of many businesses that is why credit card companies have designed special category card for businesses. You can maximize your profit due to special rewards at these credit cards. These cards also help in your business operations such as you can assign an employee to operate card at business behalf, you can get account summaries, complimentary conceinye services, extended warranty, 24 hours travel assistance service, travel accidental insurance and instant purchase notification. This meets today business environment need.
8. Credit Cards for Travel:
Now a days world have become global village, businesses have cross country boundaries.. In today world there is excess need of travel for meetings and business deals. Credit Card issuers have recognized this space and are issuing credit card with travel features. These credit cards have special rewards for travelling. With these credit cards you can enjoy VIP lounge at airports, discounts at tickets and hotel reservations, discount at food, free insurance and much more.
9. Credit cards for building credit:
To illustrate, If you have taken some bad steps in the past or have goal for future business launching, in these both situations you have need of building of credit score. A good credit score ensure handsome credit card limit. Market has many credits that support credit score building. You can build a good score with zero annual fees or any maintenance fee.
How to improve credit score of credit cards:
First of all check the status of your credit report and observe adverse impact and errors. Always pay bills within the due dates because each day after due date will hurt your credit score. Always compare your income and debt ratio. For example if your monthly is $4,000 than credit card of worth $8,000 to $12,000 is enough for you. It formula at salary is 2X or 3X . For businessman, limit depends upon business turnover or average balance in the account. Some credit reporting agencies don’t have your income information they used your credit utilization of the card for your credit score. Experts suggest that for best score never use card more than 35% of card limit. For example if your card limit is $10,000, you should not utilize more than $4,000 for excellent credit score.
Credit Cards Score:
Without doubt, every card issuer has its own model to consider good credit score. Normally credit score between 670 to 740 is considered a good score. However this range may vary with each card issuer.
Fair Credit Score:
Generally credit score of credit cards is fair between 580-670. However it may vary with card issuer. This range may be fair for one issuer while for other it may be good.
Bad Credit Score:
To sum up, if your credit score is below 580, than it may be considered as bad credit score by many credit card companies. When your credit score is bad than you have very limited choices of offers. Some card issuers provide card in such situation ti improve your credit score. But usually such cards have high fees and interest rates.
How many Credit Bureaus are in the U.S?
U.S has three major credit Bureaus agencies
To this end, for calculating your credit score each agency has its own pattern. These agencies generate your credit score that is in the 3 digits. This score determine that how much loan you can avail. Credit Score in the U.S play important role for getting any personal loan, credit card or mortgages.
How many credit cards should the average person have?
Suggesting a right number of credit cards at one time is difficult because everyone have different income pattern, different profits, different goals and different capacity. Multiple credit cards can support in building a good credit score history but on the other side multiple credit cards can hurt your credit score. You credit score also depends upon the factors that how many credit card do have and how much amount you have utilize. Our experts recommendation is that never hold more than 4 credit cards and never utilize card limit more than 35% for maintain good credit score.
Advantages of having multiple Credit Cards:
Multiple credit cards are usually god for you because you can build your credit score. A good credit score ensures good loan offers. You can opportunity to get low interest rate loan and credit card with multiple offers &perks.
What is 5 24 rules?
Chase is big issuer of credit card in the U.S and its benefits & perks are unmatchable by the competitors. A few companies just like Chase follow 5 24 rule which means that if you have got 5 or more credit card in last 24 months than are not eligible for more card. You debt to equity ratio is full and you have no space for a new credit card. So always try to avoid unnecessary card.
Is it OK to have five credit cards?
According to 5 24rule of Chase, 5 or more credit cards are not good for you. Never hold more than four cards.
Disadvantages of having multiple credit cards:
If you have multiple card, first of all different card with high debt are difficult to manage and pay. Second drawback is that when you apply multiple credit cards, issuer checks your credit score each time at credit Bureau. Too many dings at Bureau will hurt your credit score. You will lose your chance to a good limit and outstanding offer credit card.
How to view credit score?
How to choose best credit card?
Choosing a right credit card is difficult due to multiple reasons, however you have to compare fee and benefits, and you should take into consideration your spending hobby before choosing a credit card. We will discuss some basic factors that are important for choosing a right credit card.
1. Annual Fee:
Some credit card have high annual fee, some are with zero annual fee. However it is important to take a look at welcome bonus, rewards and other perks and compare it with annual fee. Normally, annual fee will offset with its benefits and rewards.
2. Interest Rate:
You have to take a look at regular APR of the card and compare it with other card. There is always a possibility that you could not pay full bill amount, in this situation you will be charged high interest. You should also analyze the Intro APR that have function to defer interest for a specific period. You can get expensive product with very easy and affordable installments.
3. Other Charges:
You should analyze the other charges such as balance transfer fee or foreign transaction fee. It depends upon your goal that whether you want shift your outstanding debt to another card for a longer period and without interest or you have to do international transactions.
It is very important factor before choosing a credit card. Some credit card offer high percentage rewards for specific purchases or at specific stores. Always keep in mind your spending hobby. For example there is credit card offer you will get 5% cash back at gas station purchases, if you don’t have card than this offer have no gain for you. This card is suitable for those who have own car.
5. Other Perks:
Always, you should also analyze the other perks offered by the card. Examples of these perks are Warranty Protection, Free Travel Insurance, and VIP AirPort Lounge Access etc. You can save money from these perks.
Types of Credit Card Companies:
In the ,meantime, we will discuss here different type of credit card companies.
1. Credit Card Issuer:
Many credit cards issuer directly issue credit card with own name and own logo, such as Chase Bank or Capital One issuing credit card. Some credit cards are issued by bank but requesting company is business owner. For example Best Buy is electronic retailer not a card issuer but it have credit card that are being issued with the support of Citi Bank. There are also some cards in the market where issuer is not a financial institution such as Chame or Upgrade.
2. Credit Card Networks:
Market of Credit Card basically has four types of networks;
- Master Card
- American Express
Networking play important role for smooth processing of payment between buyer and merchant. Visa & Master Card are famous and have large coverage in many countries, while American Express & Discover are limited to few countries. In this case card issuer and Network Company are same.
What Credit Card should I get?
Remember that, Always keep different credit card of different companies to avail different category rewards. For better understanding you should keep a card that is best for travelling, your second card should be best for grocery purchases, your third card should be best for gas station purchases. Now you will enjoy benefits in every situation. However our recommendation is that never keep more than 5 credit card. Always keep in mind your spending hobby.
Different types of Credit Card User:
Here we will take a look at different types of credit card users.
1. Value Shopper
When we talk about the value shoppers, there need is maximum cash back rewards at daily purchases. Such card holders want minimum annual fee with maximum cash back rewards. Such customers have main focus at groceries, drugs purchases or gas station purchases.
This type of customer love travelling either for enjoyment or for their business. Now the world have become global village so excess travelling needed for business meeting and business expansion even beyond the country border. Such customer wants maximum rewards at travelling with other perks such as VIP Airport Lounge Access, Free Travel Insurance, and Discount at rental car booking.
Students have different need than traveler or value shoppers. Now day’s credit card issuers prefer students so offering with very attractive packages. It is due to this reality that students are near future economy players. First card creates loyalty for maximum users. That is the reason students are being offered with attractive rewards and lovely perks.
4. Credit Builders:
If you are new to credit card world or in the past due to some sort of wrong decision your credit score has been damaged, than you have need of credit building. A good credit score ensure high loan limit and multiple credit card offers. For meeting this need usually Secured Credit Card are issued and such credit card have high fees.
5. Business Owners:
Business owner’s need of credit card is different from students, traveler or value shoppers. If you have a shop at Amazon or Wal-Mart than your requirement of card is different. In such a case you have needed maximum unlimited cash back rewards with additional perks such Warranty Protection, Instant Notification of Purchases, Quick Refunds, Need of Balance Summaries and Quick help line Service.
6. Brand Loyalist:
If you are brand conscious and want purchases only specific product of specific store, than you needed Co-Branded Store Card. For example you want buy electronics products from BestBuy only, in such a case Best Buy Credit Card is best solution for you.
How to get maximum benefit from the credit card?
While credit cards are source of handsome earnings, benefits, services and protections. Therefore you can get maximum benefit only with proper utilization of card. In short, we will discuss a few steps that will help in maximizing your gain.
Search Rewards according to your spending hobby:
Summing up, major part of earning from credit card comes from rewards. In truth, it is important that take a look at your buying behavior and choose card accordingly. For example if your mostly buying are at groceries stores than choose a credit card that offer highest cash back at groceries purchases.
Get detail knowledge of your credit card:
To illustrate, credit card offer many benefits, rewards and perks such as travel perks, specific store discounts, anniversary bonus, extended warranty and free insurance. Sometimes there is restriction that you have need of prior registration so it is important you should have detail knowledge of your card to get maximum benefit from the card.
Make credit card payments at time:
To explain, It is recommended that always make full bill payment before the due date. Because some rewards expire if payments are not within due dates. In such a case you will not be able to take benefits from rewards or offers. And it will also hurt your credit score.
Redeem Rewards at time:
To summarize, when you have earned rewards, try to consume the earned rewards (points, mileage) timely. Because sometimes rewards are expired after a specific time due to non-utilization. In such a case you will lose your already earned rewards.